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Securities
 12 Months Ended
Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Securities
Securities

The following tables summarize the amortized costs and estimated fair values of AFS and HTM securities, as of the dates indicated:
 
Amortized Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair
Value
December 31, 2017:
  

 
  

 
  

 
  

AFS Securities:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
7,232

 
$
103

 
$
—

 
$
7,335

Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
510,176

 
597

 
(7,471
)
 
503,302

Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
279,575

 
14

 
(6,790
)
 
272,799

Subordinated corporate bonds
5,484

 
173

 
—

 
5,657

Total AFS debt securities
802,467

 
887

 
(14,261
)
 
789,093

Equity securities
554

 
252

 
—

 
806

Total AFS securities
$
803,021

 
$
1,139

 
$
(14,261
)
 
$
789,899

HTM Securities:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
94,073

 
$
1,077

 
$
(237
)
 
$
94,913

Total HTM securities
$
94,073

 
$
1,077

 
$
(237
)
 
$
94,913

December 31, 2016:
  

 
  

 
  

 
  

AFS Securities:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
8,848

 
$
153

 
$
—

 
$
9,001

Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
485,222

 
2,515

 
(7,115
)
 
480,622

Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
289,046

 
265

 
(5,421
)
 
283,890

Subordinated corporate bonds
5,481

 
132

 
—

 
5,613

Total AFS debt securities
788,597

 
3,065

 
(12,536
)
 
779,126

Equity securities
632

 
109

 
—

 
741

Total AFS securities
$
789,229

 
$
3,174

 
$
(12,536
)
 
$
779,867

HTM Securities:


 


 


 


Obligations of states and political subdivisions
$
94,609

 
$
618

 
$
(631
)
 
$
94,596

Total HTM securities
$
94,609

 
$
618

 
$
(631
)
 
$
94,596



At December 31, 2017 and 2016, net unrealized losses on AFS securities included in AOCI amounted to $10.3 million, net of a deferred tax benefit of $2.8 million, and $6.1 million, net of a deferred tax benefit of $3.3 million, respectively.

Impaired Investment Securities

Management periodically reviews the Company’s investment portfolio to determine the cause, magnitude and duration of declines in the fair value of each security. Thorough evaluations of the causes of the unrealized losses are performed to determine whether the impairment is temporary or other-than-temporary in nature. Considerations such as the ability of the securities to meet cash flow requirements, levels of credit enhancements, risk of curtailment, and recoverability of invested amount over a reasonable period of time, and the length of time the security is in a loss position, for example, are applied in determining OTTI. Once a decline in value is determined to be other-than-temporary, the cost basis of the security is permanently reduced and a corresponding charge to earnings is recognized.
The following table presents the estimated fair values and gross unrealized losses of investment securities that were in a continuous loss position at December 31, 2017 and 2016, by length of time that individual securities in each category have been in a continuous loss position:
 
Less Than 12 Months
 
12 Months or More
 
Total
  
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
December 31, 2017:
  

 
  

 
  

 
  

 
  

 
  

AFS Securities:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
$
221,466

 
$
(2,393
)
 
$
233,971

 
$
(5,078
)
 
$
455,437

 
$
(7,471
)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
102,612

 
(696
)
 
164,389

 
(6,094
)
 
267,001

 
(6,790
)
Total AFS securities
$
324,078

 
$
(3,089
)
 
$
398,360

 
$
(11,172
)
 
$
722,438

 
$
(14,261
)
HTM Securities:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
9,317

 
$
(57
)
 
$
9,436

 
$
(180
)
 
$
18,753

 
$
(237
)
Total HTM securities
$
9,317

 
$
(57
)
 
$
9,436

 
$
(180
)
 
$
18,753

 
$
(237
)
December 31, 2016:
  

 
  

 
  

 
  

 
  

 
  

AFS Securities:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
$
348,579

 
$
(5,780
)
 
$
29,496

 
$
(1,335
)
 
$
378,075

 
$
(7,115
)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
163,412

 
(2,906
)
 
74,212

 
(2,515
)
 
237,624

 
(5,421
)
Total AFS securities
$
511,991

 
$
(8,686
)
 
$
103,708

 
$
(3,850
)
 
$
615,699

 
$
(12,536
)
HTM Securities:


 


 


 


 


 


Obligations of states and political subdivisions
$
42,805

 
$
(631
)
 
$
—

 
$
—

 
$
42,805

 
$
(631
)
Total HTM securities
$
42,805

 
$
(631
)
 
$
—

 
$
—

 
$
42,805

 
$
(631
)


At December 31, 2017 and 2016, the Company held 209 investment securities with a fair value of $741.2 million and $658.5 million that were in an unrealized loss position totaling $14.5 million and $13.2 million, respectively, that are considered temporary. Of these, MBS and CMOs with a fair value of $398.4 million and $103.7 million were in an unrealized loss position, and have been in an unrealized loss position for 12 months or more totaling $11.2 million and $3.9 million at December 31, 2017 and 2016, respectively. The decline in the fair value of the debt securities is reflective of current interest rates in excess of the yield received on investments and was not indicative of an overall credit deterioration or other factors with the Company's investment portfolio. At December 31, 2017 and 2016, gross unrealized losses on the Company's AFS and HTM securities were 2% of the respective investment securities fair value.

The Company has the intent and ability to retain its investment securities in an unrealized loss position at December 31, 2017 until the decline in value has recovered.

Security Gains and Losses and OTTI of Securities

The following table details the Company’s sales of AFS investment securities, the gross realized gains and losses, and OTTI of securities:
 
For The Year Ended
December 31,
  
2017
 
2016
 
2015
Proceeds from sales of securities
$
20,366

 
$
28,850

 
$
12,426

Gross realized gains
869

 
125

 
221

Gross realized losses
(14
)
 
(74
)
 
(217
)
Previously recorded OTTI
—

 
—

 
204



For the year ended December 31, 2017, 2016, and 2015, the Company sold certain AFS investment securities with a total carrying value of $19.5 million, $28.8 million, and $12.4 million, respectively, and recorded net gains on the sale of AFS securities of $855,000, $51,000, and $4,000, respectively, within non-interest income in the consolidated statements of income.

FHLBB and FRB Stock

As of December 31, 2017 and 2016, the Company's investment in FHLBB stock was $18.3 million and $17.8 million, respectively. At December 31, 2017 and 2016, the Company's investment in FRB stock was $5.4 million. At December 31, 2017 and 2016, there were no indications of impairment of the Company's investment in FHLBB or FRB stock.

For the year ended December 31, 2017, 2016 and 2015, the Company recorded dividend income from its investment in FHLBB and FRB stock of $1.1 million, $1.0 million and $579,000, respectively.

Securities Pledged

At December 31, 2017 and 2016, securities with an amortized cost of $702.5 million and $597.3 million, respectively, and estimated fair values of $691.2 million and $589.7 million, respectively, were pledged to secure FHLBB advances, public deposits, and securities sold under agreements to repurchase, and for other purposes required or permitted by law.

Contractual Maturities

The amortized cost and estimated fair values of securities by contractual maturity at December 31, 2017 are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
Amortized Cost
 
Fair
Value
AFS Securities
 
 
 
Due in one year or less
$
4,986

 
$
4,983

Due after one year through five years
104,294

 
103,572

Due after five years through ten years
212,809

 
209,663

Due after ten years
480,378

 
470,875

  
$
802,467

 
$
789,093

HTM Securities
 
 
 
Due in one year or less
$
751

 
$
751

Due after one year through five years
4,705

 
4,721

Due after five years through ten years
10,110

 
10,192

Due after ten years
78,507

 
79,249

 
$
94,073

 
$
94,913